# Lesson Plan: Preparation of Accounts of Non-Profit-Making Organizations - Practical Illustration
### Subject: Financial Accounting
### Grade: Senior Secondary 2
### Duration: 80 minutes
### Topic: Preparation of Accounts of Non-Profit-Making Organizations - Practical Illustration
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### Objectives:
By the end of this lesson, students will be able to:
1. Understand the key components in the preparation of accounts for non-profit organizations.
2. Apply accounting principles to the income and expenditure statements of non-profit organizations.
3. Prepare a practical illustration of the accounts related to non-profit organizations.
### Materials Needed:
- Whiteboard
- Markers
- Projector (if available)
- Handouts with sample data for practical illustration
- Accounting notebooks
### Lesson Outline:
#### Introduction (10 minutes)
1. **Greeting and Attendance (2 minutes)**:
- Welcome students and take attendance.
2. **Recap of Previous Lesson (3 minutes)**:
- Briefly review the previous lesson on non-profit organization accounts (e.g., definition, purpose, differences from profit-making organizations).
3. **Lesson Overview (5 minutes)**:
- Introduce the topic: Preparation of Accounts of Non-Profit Organizations.
- State today's objectives clearly.
#### Instructional Input (20 minutes)
1. **Key Components (10 minutes)**:
- **Income and Expenditure Account**: Explain the format and main components like incomes (donations, membership fees) and expenditures (salaries, rent).
- **Balance Sheet**: Discuss typical items such as assets (buildings, library), liabilities (loans), and funds (general fund, specific purpose funds).
- Use diagrams and examples to illustrate these concepts.
2. **Accounting Principles (10 minutes)**:
- Explain the accrual basis of accounting, the importance of matching income with related expenses, and accounting for depreciation.
- Highlight how these principles apply to non-profit organizations.
#### Practical Illustration (30 minutes)
1. **Group Activity Setup (5 minutes)**:
- Distribute handouts with sample data (income and expenditures, asset and liability information) for a hypothetical non-profit organization.
- Break the class into small groups (4-5 students).
2. **Guided Practice (20 minutes)**:
- Guide students through the process of preparing an Income and Expenditure account.
- Walk through the creation of a Balance Sheet with the given data.
- Circulate around the room to offer assistance and feedback.
3. **Discussion and Q&A (5 minutes)**:
- Discuss the completed accounts as a class.
- Encourage questions and address any areas of confusion.
#### Independent Practice (15 minutes)
1. **Homework Assignment (10 minutes)**:
- Provide an additional set of data for a different non-profit organization.
- Instruct students to prepare the Income and Expenditure account and Balance Sheet independently, to be submitted in the next class.
2. **Review Key Points and Clarifications (5 minutes)**:
- Summarize the key steps and important considerations in the preparation of non-profit organization accounts.
- Address any remaining questions.
#### Conclusion (5 minutes)
1. **Recap of Lesson**:
- Quickly summarize what was covered in the lesson.
2. **Preview Next Lesson**:
- Provide a brief overview of what will be covered in the next lesson.
3. **Feedback and Closing**:
- Ask for student feedback on the lesson.
- Thank students for their participation and remind them of the homework assignment.
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### Assessment:
- **Formative Assessment**: Monitor student participation during group activity and Q&A sessions.
- **Summative Assessment**: Review and grade the homework assignment submitted in the next class to evaluate understanding and application of the concepts.
### Follow-Up:
- Schedule one-on-one sessions with students who need additional help.
- Provide additional resources and reading materials for students interested in furthering their understanding of non-profit accounting.
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This lesson plan is designed to ensure students gain practical experience and a thorough understanding of preparing accounts for non-profit-making organizations. The mixture of instructional input, group work, and independent practice aims to enhance learning and retention.